We’re back after a two-week break, and there’s plenty to catch up on in this week’s episode. The Money Wise guys dive straight into the recent market pullback, examining the roughly 2% drop across major indexes and what’s driving the latest wave of investor anxiety. From fears of an “AI bubble” to the media’s constant comparisons to the dot-com era, the hosts discuss why the recent downturn looks more like a technical correction than a fundamental shift.
They also break down the factors behind this pullback, including stretched valuations, short-term speculation in areas like cryptocurrency, and limited new economic data due to the ongoing government shutdown. Despite the noise, they argue that the core market fundamentals, strong earnings, steady GDP growth, and historical patterns, point to a healthy, ongoing bull market. The conversation also touches on the role of media sentiment in shaping investor behavior and how the rhetoric surrounding tech and AI may be fueling unnecessary volatility.
The AI Bubble Myth
The “AI bubble” narrative has become a favorite talking point in the financial media, but treating every tech-led rally as the next dot-com repeat can mislead investors. Calling it a bubble implies that valuations are detached from reality, when in fact today’s AI growth is being driven by real spending, real adoption, and real earnings from some of the strongest companies in the world. The danger of the AI Bubble Myth is that it fuels unnecessary fear, pushes investors to the sidelines, and encourages emotional decision-making right when long-term discipline matters most. When headlines shout “bubble,” investors risk reacting to noise rather than fundamentals.
In the second hour, the Money Wise guys give listenters a peek into what Wall Street Won’t Tell You. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.
